Roche acquires Carmot Therapeutics’ valuable obesity and diabetes R&D in US$2.7 BN deal

05 Dec 2023 --- Swiss-based Roche has secured a US$2.7 billion definitive merger agreement to acquire the private US company Carmot Therapeutics. This strategic merger brings forth a promising R&D portfolio, particularly focusing on incretins — gut hormones influencing insulin secretion and appetite suppression — with the potential to transform patient care in weight management.

“Obesity is a heterogeneous disease, which contributes to many other diseases that together comprise a significant health burden worldwide,” says Thomas Schinecker, CEO of Roche Group. “By combining Carmot’s portfolio with programs in our pharmaceuticals pipeline and our diagnostics expertise and portfolio of products across cardiovascular and metabolic diseases, we are aiming to improve the standard of care and positively impact patients’ lives.”

“We are encouraged by the clinical data for the lead asset CT-388, which demonstrated substantial weight loss in phase 1b. These data suggest the potential for a differentiated profile to treat obesity and its associated diseases”, adds Levi Garraway, Roche’s chief medical officer and head of global product development.

“The broad Carmot portfolio offers different routes of administration and opportunities to develop combination therapies that treat obesity and potentially other indications.”

Roche indicates encouragement by the clinical data for the lead asset, which demonstrated substantial weight loss.Carmot’s portfolio
Roche now has access to Carmot’s clinical stage incretins R&D. Incretin-based treatments can be administered as standalone medicine and in combination with Roche’s own assets.

Roche outlines Carmot’s CT-388, a Phase-2 ready dual glucagon-like peptide-1 (GLP-1)/gastric inhibitory polypeptide (GIP) agonist, as a lead asset with promising potential for the treatment of patients with and without type 2 diabetes.

Clinical data referenced by Roche suggests CT-388 has the “best-in-class potential” to sustain weight loss. The medication can further be administered alongside Roche’s in-house developed assets, including those focused on preserving muscle mass.

Last month, Nestlé indicated a change in direction as it began the development of products complementary to popular weight loss drugs based on GLP-1 agonists.

Appetite suppression
The California-based Carmot’s portfolio also includes CT-996, an oral, small molecule GLP-1 receptor agonist currently in Phase-1, aimed at patients with obesity and with and without type 2 diabetes.

CT-868 is a subcutaneous injectable, dual GLP-1/GIP receptor agonist in Phase-2 intended for the treatment of type 1 diabetes patients who are struggling with being overweight or obese.

Incretins play a pivotal role in modulating blood glucose. The acquisition opens doors to exploring broader applications in cardiovascular, retinal and neurodegenerative diseases.

Incretins, gut hormones influencing insulin secretion and appetite suppression, play a pivotal role in modulating blood glucose.A recent brain imaging study identified a satiety signaling pathway targeted by the same brain cells reached by GLP-1 weight loss drugs, which has been identified as an important step in further developing this treatment method.

Meanwhile, scientists are expressing concern over the sustainability of weight loss drug usage, given the likelihood of weight gain following the compilation of the treatment.

Experts point to natural solutions aimed at diabetes and obesity prevention as a healthier alternative than weight loss medication.

Acquisition details
Roche will pay Carmot’s equity holders a purchase price of US$2.7 billion in cash at the closing of the transaction and additional milestone payments of up to US$400 million.

Upon closing the transactions, Roche will receive access to Carmot’s R&D portfolio, including all clinical and preclinical assets. Carmot and all its employees are set to join the Roche Group as part of its Pharmaceuticals Division.

The transaction grants Roche access to Carmot’s innovative Chemotype Evolution discovery platform, a valuable asset in advancing R&D efforts across cardiovascular and metabolic diseases.

By Milana Nikolova

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